Question 1

Paper 1Easy5 marks

A local market sells honey in jars. Let qq be the quantity, in thousands of jars per week, and let pp be the price, in dollars per jar. Figure 1 shows the demand and supply models for this market.

0102030405060700102030405060708090q (thousands of jars per week)p (dollars per jar)Demand: pD = 78 - 1.2qSupply: pS = 12 + 0.8q
(a)

Write down the quantity at which the demand curve intersects the quantity axis.

[1]
(b)

Using graphing technology, find the market equilibrium. Give the quantity and price, with their units.

[3]
(c)

Write down the price at which the supply curve intersects the price axis.

[1]

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